Owning a home has great financial benefits, yet many continue to rent! Today, letâ€™s look at the financial reasons why owning a home of your own has been a part of the American Dream for as long as America has existed.
Realtor.comÂ recentlyÂ reportedÂ that:
â€œBuying remains the more attractive option in the long term â€“ that remains the American dream, and itâ€™s true in many markets where renting has become really the shortsighted optionâ€¦ as people get more savings in their pockets, buying becomes the better option.â€?
What proof exists that owning is financially better than renting?
1. In a previous blog we highlighted the top 5Â financial benefitsÂ of homeownership:
- Homeownership is a form ofÂ forced savings.
- Homeownership provides tax savings.
- Homeownership allows you toÂ lock in your monthly housing cost.
- Buying a home isÂ cheaper than renting.
- No other investment lets youÂ live inside of it.
2. Studies have shown that a homeownerâ€™s net worth is 44x greater than that of a renter.
3. Just aÂ few months ago, weÂ explainedÂ that a family that purchased an average-priced home at the beginning of 2018 could build more than $44,000 in family wealth over the next five years.
4. Some argue that renting eliminates the cost of taxes andÂ home repairs, but every potential renter must realize that all the expenses the landlord incurs are already baked into theÂ rent paymentâ€“Â along with a profit margin!!
Owning a home has always been, and will always be, better from a financial standpoint than renting.
Source: Keeping Current Matters